Despite all the contrasting opinions, though, most people agree on at least five basic fundamentals.
No, save 15%!
Pay your high-interest credit cards first!
No, pay the smallest balance!
), but personal finance is actually pretty simple.
No, use mine!
Thats what were doing this for.
Money is just the tool that gets you there.
But either way, its the same thing.
AsThe Millionaire Next Doornotes, there are even high-income people who spend more than they make.
But having a high income is not the same as having lots of wealth.
The people who become millionaires are the ones who mind the gap.
Money Mustache, whichoffers great examples of frugal living.
Many of us dont track our weight or our spending.
Where is the money actually going?
Step 1 ofI Will Teach You To Get Richsprogram is toknow where you spend your money.
Likewise, Sue Ormans first step in her financial Get a Grip checklist is totrack your spending.
Tools likeMintmake it dead simple bytracking everything for you automatically.
Either way, approximately zero people think debt is good.
The experts dont agree on this either, but considerwhich debt is good or badandits interest rate.
It can help you or hurt you in a huge way.
Take credit cards, for example: carrying a balance can quickly dig yourself into a financial hole.
Take, for instance, an iPod.
Its the best way to make your money work for you.
Baby Step Four is not Get rich quick.
The investing you do systematically and consistently over time will make you wealthy.
Systematic, consistent investing is the tortoise that beats the hare in the race.
When you keep at it, the investing compounds and explodes.
(Explodes in a good way.)
Remember, financial success if more than just math, too,its about mindset.
Thats also something most people know about money, but perhaps dont think about very often.
Illustration by Tara Jacoby.
